What happened
You'd be hard-pressed to find investors who don't love it when one of their companies delivers an estimates-busting quarter. Such was the case on Wednesday with biotech Alkermes (ALKS 0.92%), which crushed analysts' projections like a grape with its fourth-quarter fundamentals. Investors did the happy dance in response, driving the stock up by nearly 15% on the day.
So what
For its final quarter of 2021, Alkermes posted revenue of $324.5 million. This was a sturdy 16% higher than in the same period the previous year. Non-GAAP (adjusted) net income doubled and then some to $38.5 million, or $0.24 per share.
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Both figures positively trounced prognosticator expectations. Collectively, the analysts tracking Alkermes stock were forecasting slightly under $309 million for revenue, and a significantly lower adjusted per-share net income figure of $0.11.
In the earnings release, Alkermes quoted CEO Richard Pops as saying that the improvements were due to "growing our commercial business, expanding and advancing our development pipeline, and driving profitability."
Across 2021, the biotech delivered notable growth for both of its main revenue streams, direct product sales and manufacturing and royalty activities. The former rose by 14% to $627 million for the year, while the latter advanced at a 12% clip to hit nearly $542 million.
Now what
Alkermes also proffered guidance for 2022, stating that it expects total revenue to reach $1 billion to $1.09 billion for the year, with the adjusted bottom line ranging from breakeven to a loss of $30 million ($0 to $0.18 per share).
